Brent oil rose more than a dollar to above $58 a barrel today as the US currency weakened and Iraqi security forces battled Islamic State fighters in Tikrit.
The dollar fell after US retail sales unexpectedly fell for a third straight month in February as harsh weather likely dampened consumer spending.
The dollar was down 0.83 percent against a basket of currencies, making dollar-traded commodities such as crude oil more attractive to holders of other currencies.
Unrest in the Middle East also supported prices. Iraqi security forces and mainly Shi’ite militia exchanged fire with Islamic State fighters in Tikrit a day after pushing into Saddam Hussein’s home city in their biggest offensive yet against the militants.
Brent was up $1.16 cents at $58.70 after gaining $1.15 during the previous session in a rebound from a one-month low.
West Texas Intermediate (WTI) oil climbed 28 cents to $48.45 a barrel, after closing the previous session down 12 cents.
Brent’s premium to US crude widened to more than $10 a barrel after dropping below $8 on Tuesday, its narrowest in a month.
Bearish sentiment towards WTI caused by a build in US crude stocks helped to widen the spread.
Any price gains could be short-lived as oil stocks are forecast to rise further due to US refinery maintenance, and the dollar could continue its recent strengthening against the euro, analysts said.
Read more market news here.
Recommended for you
